Martin Plášil. Department Markets of Food Products Institute of Agricultural Economics and Information (IAEI) Prague, Czech Republic

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1 Obtaining registration under EU protected designations for agricultural products and foodstuffs by the Czech Republic in comparison with the other nine countries that joined the EU in 2004 Martin Plášil Department Markets of Food Products Institute of Agricultural Economics and Information (IAEI) Prague, Czech Republic Abstract A system of protected brands of agricultural products and foodstuffs has existed in the EU since The goal of this project to analyse the acquisitions of protected brands of agricultural products and foodstuffs in the Czech Republic using the EU DOOR database. The Czech Republic was compared with other countries that joined the EU in the same year A comparison was made (primarily, but not exclusively) with regard to the number of registered brands and concerns the following countries: Slovak Republic, Hungary, Poland, Lithuania, Estonia, Slovenia, Malta and Cyprus. However, the comparison did not involve merely the number of registered brands, but also the individual types of registered names in detail (this means PGI, PDO and TSG considered individually). The analysis has been conducted for the years The Czech Republic is extremely successful in terms of the number of registered brands within the system of protected brands of agricultural products and foodstuffs in the EU as compared to other countries that joined the EU in The Czech Republic is the most successful with the registration of 33 brands immediately behind Poland which has registered 37 brands. Compared to the other 9 countries, the Czech Republic is in first place in terms of the number of registrations within the PGI system (23 registrations) and is in second place with regard to the number of registrations in the PDO system (the number of registrations is 6). Czech Republic has also been extremely successful with regard to the number of registrations in the TSG system, lying in third place (4 registrations). Protected Designation of Origin, Protected Geographical Indication, system of protected names, Traditional Speciality Guaranteed Introduction The system of protected designations was introduced in the EU in 1993 with the objective of protecting the names of agricultural products and foodstuffs against competition from products falsely passed off as genuine. Protection is provided to products entered in the European Commission register. Foodstuffs and agricultural products can be protected by three institutes that provide protection by means of labelling in the territory of the EU member states. Protection can also be provided through bilateral agreements in contracting third countries in other parts of the world. The institutes or logos are: Protected Geographical Indication (PGI), Protected Designation of Origin (PDO) and Traditional Specialty Guaranteed (TSG). Interest in foodstuffs of high quality is growing on the European market. Consumers require guaranteed quality, which is also why the objective of this project is to analyze the granting of protected EU status to agricultural products and foodstuffs from the Czech Republic as compared to the other 9 countries that joined the EU in 2004, i.e. in the same year as the Czech Republic. Materials and Methods An important source for attaining our main objective was the EU Database of Origin and Registration (DOOR), a database of agricultural products and foodstuffs registered or awaiting possible registration under the PDO (Protected Designations of Origin), PGI (Protected Geographical Indications) and TSG (Traditional Specialities Guaranteed) schemes. Using the database, we were able to establish the numbers and names of registered products Address for correspondence: Ing. Martin Plášil, Ph.D. Institute of Agricultural Economics and Information (IAEI) Department Markets of Food Products Mánesova 1453/75, Praha 2, Czech Republic Phone: plasil.martin@uzei.cz

2 146 in each country. The Czech Republic was compared in terms of the number of registered designations with countries that joined the EU in the same year as the Czech Republic, i.e. in These were Slovak Republic, Hungary, Poland, Lithuania, Latvia, Estonia, Slovenia, Malta and Cyprus. Comparisons were performed between total numbers of registered names and between the numbers of registrations under each quality scheme, i.e. separately for the PGI, PDO and TSG schemes. In the latter instance, we analyzed the granting of protected names in individual years between 2004 and 2016 to identify the years with the largest number of registrations by the Czech Republic and by all of the 10 countries in total, and individually under the individual schemes. The total number of protected names obtained by the Czech Republic and the other 9 countries acceding to the EU in 2004 was also related to the population of each country (Eurostat data) and the number of food companies in the individual countries (FoodDrinkEurope). Results Protected product names serve as support and protection for agricultural products and foods. The protected name schemes were introduced in the EU in 1993 with the purpose of protecting the names of agricultural products and foods against competition from nongenuine products falsely passed off as genuine. Protection is provided on the basis of entry into the European Commission register. There is a consistent increase in interest in foods of high quality on the European market, and consumers demand that quality be guaranteed. Being granted protected name status is also an excellent opportunity for the marketing of the product and its manufacturer. Foodstuffs and agricultural products can be protected by three institutes that provide protection in the territory of the EU member states. Protection can also be provided through bilateral agreements in contracting third countries. The number of product names registered under the Protected Geographical Indication (PGI) scheme Protected Geographical Indication is the name used to identify agricultural products and foodstuffs that come from a specific area. Agricultural products and foodstuffs with this logo have a specific quality, reputation or some other characteristics attributable to their geographical origin. In contrast to the protected designation of origin, the relationship between the product and the geographical area is less strict, and it suffices for any one of the steps of production, processing or preparation to take place within the defined geographical region. The number of product names registered under the Protected Designation of Origin (PDO) scheme A designation of agricultural products or foodstuffs that come from an area (name of a region, a specific place or, in exceptional cases, a country) where the quality or characteristics of the products or foodstuffs are exclusively or predominantly attributable to a particular geographical environment with its characteristic natural and human factors, and provided that production, processing and preparation of such products take place within the defined area. The number of product names registered under the Traditional Speciality Guaranteed (TSG) scheme A foodstuff or an agricultural product made or produced for a minimum of 30 years it must either be made from traditional raw materials, have a traditional composition or be produced by a traditional method of production or processing that distinguishes it from other products or foodstuffs of the same kind and category. Unlike products with a protected geographical indication or designation of origin, their production or preparation need not have a link to a specific geographical area and they can be produced anywhere as long as the conditions of production technology (known as

3 specifications) are met. Czech products registered under the TSG scheme can be made by other producers in some other region or even some other member state. The position of the Czech Republic based on registrations in the EU system of protected product names as compared to the other countries that joined the EU in 2004 The Czech Republic joined the EU along with another 9 countries (Slovakia, Hungary, Poland, Lithuania, Latvia, Estonia, Slovenia, Malta and Cyprus) in Incidentally, the Czech Republic officially applied for membership in 1996 when the then Prime Minister Klaus handed over the Czech application to join the EU in Rome on 23 rd January. Accession negotiations began in March Five years later, President Václav Klaus and Prime Minister Vladimír Špidla signed the Treaty of Accession in Athens, which came into force on 1 st May 2004, and the Czech Republic became a full member of the European Union. The Czech Republic succeeded in having Budějovické pivo (Budějovice beer), Českobudějovické pivo (České Budějovice Beer) and Budějovický měšťanský var (Budějovice Burgher s Brew) added to the list of Protected Geographical Indications in the Treaty itself. Since its entry into the EU, the Czech Republic has been extremely successful among the ten acceding countries in registering protected product names under the EU schemes for agricultural products and foodstuffs. With its 33 protected names registered, the Czech Republic ranks second only to Poland (37 protected names registered), with Slovenia (22) and Slovakia (18) ranking third and fourth, respectively (Fig. 1). The ten member states have registered a total of 141 protected indications. 147 Fig. 1. The total number of protected names registered by countries that joined the EU on 1 st May 2004 (EU DOOR Database, calculation by the IAEI) These rankings look very different, however, if the number of protected names registered is related to the size of the population. The list is then topped by Slovenia (1.07), followed by Cyprus (0.58), with the Czech Republic trailing in fourth place (0.31), see Fig. 2.

4 148 Fig. 2. The total number of protected name registrations per head of population granted to countries that joined the EU on 1 st May 2004 (EU DOOR Database, Eurostat, calculation by IAEI) If we relate the number of registered protected names to the number of food companies in the ten countries, the list is topped by Slovenia (10), followed by Latvia (5). The Czech Republic is ranked third (4.4), closely followed by Lithuania (4.3), see Fig. 3. Slovakia and Cyprus were not included in the ranking as there is no comparable data on the number of food companies. Fig. 3. The total number of protected name registrations granted to countries that joined the EU on 1 st May 2004 per food companies in the given countries (except Slovakia and Cyprus) (EU DOOR database, FoodDrinkEurope, calculation by IAEI) The largest number of protected product names was registered by the Czech Republic in 2007 and 2008 (7), followed by 2011 (6) and 2009 (5), see Fig. 4.

5 149 Fig. 4. The number of protected names from the Czech Republic registered in individual years (EU DOOR Database, calculation by IAEI) The numbers of product names registered in total in individual years under the EU quality schemes by countries that joined the EU on 1 st May 2004 The largest number of protected names was registered by these countries in 2011 (29), followed by 2010 (21) and 2008 (17), (Plate VII, see Fig. 5). The number of product names registered under the Protected Geographical Indication (PGI) The above ten countries that joined the EU in 2004 have registered a total of 80 product names under the PGI scheme to date. The Czech Republic has been the most successful of the ten countries in this period in gaining protected status under the PGI scheme for 23 product names, followed by Poland (20) and Slovenia (11), see Fig. 6. Since joining the EU up to the end of 2016, the CR registered 23 product names under the PGI scheme, see Fig. 7. The largest number of product names won protected status under the PGI scheme in 2007 and 2009 (5 in both cases) (Fig. 7). The registration was granted to the following name products: Třeboňský kapr (Třeboň Carp), Lomnické suchary (Lomnice Biscuits), Hořické trubičky (Hořice Filled Wafers), Karlovarský suchar (Karlovy Vary Biscuits) and Štramberské uši (Štramberk Ears), in The following name products obtained registration in 2009: Černá Hora, Březnický ležák (Březnice Lager), Brněnské pivo (Brno Beer); Starobrněnské pivo (Old Brno Beer), Mariánskolázeňské oplatky (Mariánské Lázně Wafers) and Znojemské pivo (Znojmo Beer). The second largest number (3) of product names was added to the PGI register in 2008 and The following product names were registered in 2008: České pivo (Czech Beer), Chodské pivo (Chodsko Beer) and Pardubický perník (Pardubice Gingerbread). Registration was granted to the following name products in 2010: Olomoucké tvarůžky (Olomouc Cheese), Jihočeská Zlatá Niva (South Bohemian Golden Niva Cheese) and Jihočeská Niva (South Bohemian Niva Cheese). Three product names, i.e. Budějovické

6 150 Fig. 6. The number of names registered under the PGI scheme by countries that joined the EU on 1 st May 2004 (EU DOOR Database, calculation by IAEI) Fig. 7. The number of product names registered by the Czech Republic under the PGI scheme in individual years (EU DOOR Database, calculation by IAEI) pivo (Budějovice Beer), Budějovický měšťanský var (Budějovice Burgher s Brew) and Českobudějovické pivo (České Budějovice Beer), were registered as part of the Treaty on the Accession of the CR to the EU. In actual fact, these product names had already been registered as early as 23 rd September 2003.

7 Two products were added to the PGI register in 2011, i.e. Karlovarské oplatky (Karlovy Vary Wafers) and Karlovarské trojhránky (Karlovy Vary Triangles). One product name was added in 2012, i.e. Chelčicko-Lhenické ovoce (Fruit from the Chelčicko and Lhenicko Districts), and another one in 2013 (Valašský frgál). No product names from the CR were added to the PGI register in years of 2005, 2006, 2014, 2015 or The number of product names registered in individual years under the PGI scheme in total by the countries that joined the EU on 1 st May 2014 From the perspective of the ten countries that joined the EU together, PGI registration activity was highest in 2011 when 14 product names received PGI status (Plate VII, Fig. 8). The year 2010 ranked second (13 registrations) and 2009 and 2012 shared third place with nine registrations each. No product names from these countries were registered under the PGI scheme in either 2005 or The number of product names registered under the Protected Designation of Origin (PDO) scheme By the end of 2016, the above ten countries that joined the EU in 2004 had registered a total of 32 product names under the PDO scheme. The list was topped by Poland and Slovenia with 8 product names each, followed by the Czech Republic and Hungary with 6 names each, see Fig Fig. 9. The number of product names registered under the PDO scheme by the countries that joined the EU on 1 st May 2004 (EU DOOR Database, calculation by IAEI) Since joining the EU up to the end of 2016, the Czech Republic registered 6 names under the PDO scheme. The number of names registered under the PDO scheme in individual years is shown in Fig. 10. Most of the product names from the Czech Republic (4) were added to the PDO scheme in 2008 (Fig. 10). The following product names were registered in 2008: Nošovické kysané zelí (Nošovice Pickled Cabbage), Český kmín (Czech Caraway Seeds), Chamomilla bohemika and Všestarská cibule (Všestary Onions). The year with the second largest number of registrations was 2007 with two registered names, i.e. Pohořelický kapr (Pohořelice Carp) and Žatecký chmel (Žatec Hops).

8 152 Fig. 10. The number of names registered under the PDO scheme by the Czech Republic in individual years (EU DOOR Database, calculation by IAEI) From the perspective of the ten countries that joined the EU together, the most productive year with respect to registrations under the PDO scheme was 2012, when six names were registered, followed by 2007 and 2008, when five names were registered in each year (Plate VIII, Fig. 11). Year 2009 and 2011 placed third with 4 registrations each. No names were registered under the PDO scheme in 2004, 2005 or Fig. 12. The number of product names registered under the TSG scheme by countries that joined the EU on 1 st May 2004 (EU DOOR Database, calculation by IAEI)

9 153 The number of product names registered under the Traditional Specialty Guaranteed (TSG) scheme The above ten countries that joined the EU in 2004 have registered a total of 29 product names to date under the TSG scheme. Czech Republic placed third with 4 registrations. Poland ranks first in terms of the number of registered names under the TSG scheme (9), followed by Slovakia (7), see Fig. 12. The Czech Republic was granted 4 registrations under the TSG scheme between its accession to the EU and the end of 2016 for the following products: Liptovská saláma/ Liptovský salám, Lovecký salám/lovecká saláma, Spišské párky, and Špekáčky/Špekačky. These applications were submitted jointly by the Czech Republic and Slovakia and the names were registered by the EU on the same date (22 nd February 2011). From the perspective of the ten countries that joined the EU together, the most productive year with respect to registrations under the TSG scheme was 2012, when six products were registered, followed by 2010 with six registrations and 2008 with four registrations. No product names were registered under the TSG scheme in 2004, 2005, 2006, 2007 or 2016 (Plate VIII, Fig. 13). Conclusions When compared with the other 9 states with which it joined the EU in 2004, the Czech Republic has been extremely successful in obtaining protected status for its agricultural products and foodstuffs under the EU system of quality logos, because: With 33 registered products, the Czech Republic has been the most successful, second only to Poland (a total of 37 protected names). The Czech Republic is also successful with its registrations on a per capita basis claiming fourth place among the ten countries, with Slovenia and Cyprus ranking first and second. The Czech Republic is also doing well when the number of registered protected names is related to the number of food companies in each of the ten countries, with only Slovenia (10) and Latvia (5) ranking higher. The Czech Republic placed third (4.4), closely followed by Lithuania (4.3). Slovakia and Cyprus were not included in this ranking as comparable data on the number of food companies from the two countries is lacking. During the period under consideration, the Czech Republic was the most successful of the ten acceding countries with respect to registrations under the PGI scheme with a total of 23 registered products, followed by Poland (20) and Slovenia (11). During the period under consideration, the Czech Republic was the second most successful among the ten acceding countries in the number of registrations under the PDO scheme, sharing second place with Hungary with six products. Only Poland and Slovenia were more successful with 8 PDO registrations each. The largest number of Czech product names were registered under the PDO scheme in The Czech Republic has also been successful with registrations under the TSG scheme compared to the other nine acceding countries, ranking third with four registrations. Poland and Slovakia rank first and second with nine and seven registered product names, respectively. The largest number of product names was registered under the EU protected designation schemes by the Czech Republic equally in 2007 and 2008, followed by 2011 and The largest number of product names in total by all the countries that joined the EU on 1 st May 2004 was registered under the EU protected designation schemes in 2011, followed by 2010 and Acknowledgements This article is one of the outputs of the IAEI IPP No internal support project Analysis of EU protected designation schemes in the Czech Republic (2016).

10 154 References Commission Delegated Regulation (EU) No. 664/2014 of 18 th December 2013 supplementing Regulation (EU) No. 1151/2012 of the European Parliament and of the Council with regard to the establishment of the Union symbols for protected designations of origin, protected geographical indications and traditional specialities guaranteed and with regard to certain rules on sourcing, certain procedural rules and certain additional transitional rules Commission implementing Regulation (EU) No. 668/2014 of 13 th June 2014 laying down rules for the application of Regulation (EU) No. 1151/2012 of the European Parliament and of the Council on quality schemes for agricultural products and foodstuffs Council Regulation (EC) No. 509/2006 of 20 th March 2006 on agricultural products and foodstuffs as traditional specialities guaranteed Council Regulation (EC) No. 510/2006 of 20 th March 2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs Eurostat (2016): Population change - Demographic balance and crude rates at national level. Available at: appsso.eurostat.ec.europa.eu/nui/show.do?dataset=demo_gind&lang=en FoodDrinkEurope (2016): Data & Trends of the European Food and Drink Industry 2016 Regulation (EU) No. 1151/2012 of the European Parliament and of the Council of 21 st November 2012 on quality schemes for agricultural products and foodstuffs

11 Plate VII Plášil M. et al.: Obtaining registration... pp Fig. 5. The number of protected names registered in total in individual years by countries that joined the EU on 1st May 2004 (EU DOOR Database, calculation by IAEI) Fig. 8. The number of product names registered in individual years under the PGI scheme from the countries that joined the EU on 1 st May 2014 (EU DOOR Database, calculation by IAEI)

12 Plate VIII Fig. 11. The number of product names registered in individual years under the PDO scheme in total from the countries that joined the EU on 1 st May 2014 (EU DOOR Database, calculation by IAEI) Fig. 13. The number of product names registered in individual years under the TSG scheme in total from the countries that joined the EU on 1 st May 2014 (EU DOOR Database, calculation by IAEI)